WFS 1Q22 results and more -3

08:40 09-May-22


Westport Fuel Systems has reported its first quarter results:
Don't be fooled by WPRT being up a bit in the pre-market, or by the headline numbers, which include $19.1M of proceeds from the Cummins JV sale.  Without that non-recurring gain, I calculate a loss of 7 cents per share, which would miss by 2 cents.  Gross margin was down by almost a quarter.  Management acknowledges the macro challenges and still isn't providing guidance.  This isn't the end of the world, but it's certainly not good.  Hydrocarbons are also being brought down by the liquidity crunch, but Henry Hub gas just below $8 isn't nearly enough to help Westport.  The conference call is at 10am, and I will only write again if there is some surprise.

Vuzix is back to unquantified press releases with reorders from 3 out of 5 of its defense customers.  Management says they are a a step towards acceptance and volume orders.  VUZI is below $5 but all these GRoDT stocks are getting slammed.  Natural gas remains my primary defense, including XEBEF/XBC, even though the rebate rate has fallen to a still stellar 75%.  For those who can stomach the volatility, AKTS & AMSC are also dramatically under-priced.  For a little more reliability, HIMX & BGCP are my Growth values.  I'm also keeping an eye on DISH at half recent prices and a third of its 3 year highs.  Though I've long predicted difficultly for the company, every stock has a right price.  We're probably still not quite there yet for DISH, but getting closer.  I will be doing testing on the quality of its build out efforts next month.  In the meantime, for those who are bothered by volatility, bonds and high yield remain the best, though still imperfect, shelter.

I also want to note that moving NFE and OEG will have to wait, due to administrative busywork.  CrowdWisers is evaluating a new credit card payment processor and since we do not store card information, we will be reaching out to subscribers who pay that way to switch them over.